You are here » Home » Companies » Company Overview » Andhra Cements Ltd

Andhra Cements Ltd.

BSE: 532141 Sector: Industrials
NSE: ANDHRACEMT ISIN Code: INE666E01012
BSE 15:41 | 27 Mar 2018 Andhra Cements Ltd
NSE 05:30 | 01 Jan 1970 Andhra Cements Ltd
OPEN 9.21
PREVIOUS CLOSE 9.54
VOLUME 19701
52-Week high 16.02
52-Week low 8.30
P/E
Mkt Cap.(Rs cr) 277
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.21
CLOSE 9.54
VOLUME 19701
52-Week high 16.02
52-Week low 8.30
P/E
Mkt Cap.(Rs cr) 277
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Andhra Cements Ltd. (ANDHRACEMT) - Auditors Report

Company auditors report

TO THE MEMBERS OF

ANDHRA CEMENTS LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of ANDHRA CEMENTSLIMITED ("the Company") which comprises the Balance sheet as at June 302015 the Statement of profit and loss and the cash flow statement for fifteen monthsperiod ended June 30 2015 and a summary of significant accounting policies and otherexplanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at June30 2015 and its losses and its cash flows for the period ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inthe paragraph 3 and 4 of the Order.

2. As required by section 143 (3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this report are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on June30 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on June 30 2015 from being appointed as a director in terms of Section 164 (2) of theAct.

f. With respect to the other matters to be included in the Auditor’s Report inaccordance with

Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:

i. The Company has disclosed the impact of all pending litigations on its financialposition in its financial statements. (Refer Note-34 to the financial statements).

ii. The Company has made provision as required under the applicable law or accountingstandards. The company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

iii. According to the information and explanation given to us and having regard toscheme sanctioned by the BIFR and based on opinion obtained by the Company the certainamount pertaining to unpaid matured deposits and debenture balance funds held with thebanks no amount to be transferred to the Investor Education and Protection Fund by theCompany till June 30 2015.

For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Registration No. 307068E
R N CHATURVEDI
Noida Partner
August 28 2015 Membership No. 092087

ANNEXURE REFERRED IN INDEPENDENT AUDITORS REPORT OF EVEN DATE

The Annexure referred to in our Independent Auditors’ Report to the members of theCompany on the standalone financial statements for the period ended June 30 2015 wereport that:

i. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us discrepancies noticed on such verification werenot material and have been properly dealt with in the books of account.

ii. a. According to the information and explanations given to us the management hasconducted physical verification of inventory at reasonable intervals during the year.

b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and nature of the business.

c. In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories. The discrepancies noticed onverification between physical stocks and book records were not material and have beenproperly dealt with in the books of account.

iii. According to the information and explanations given to us the Company has notgranted any secured or unsecured loan to companies firms or other parties covered inthe register maintained under Section 189 of the Companies Act 2013. Accordingly theclause iii (a) and (b) of paragraph 3 of the Order are not applicable to the Company.

iv. According to the information and explanations given to us there is an adequateinternal control system commensurate with the size of the company and the nature of itsbusiness for the regards to purchases of inventory fixed assets and the sale of goods andservices. During the course of our audit we have neither observed nor have been informedof any continuing failure to correct major weaknesses in internal control system of theCompany.

v. In our opinion and according to the information and explanations given to us TheCompany has not accepted any deposits within the meaning of Section 73 to 76 of the Actand the rules framed thereunder to the extent notified. Further in respect of depositsaccepted by the Company during the earlier year the Company Law Board (Southern RegionalBench) has by its Order dated July 07 2001 directed the company to repay the saiddeposits in accordance with the scheme sanctioned by the BIFR. However the BIFR in itsModified Rehabilitation Scheme dated July 21 2008 directed the fixed deposits holders toaccept the outstanding principal amount in four annual installments on interest freebasis. Further no other Order against the Company has been passed by the Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal. In respect of these deposits the Company is yet to comply with the requirementof maintaining liquid assets and filing of Return of Deposit.

vi. We have broadly reviewed the books of cost records maintained by the Companypursuant to the Rules made by the Central Government under Section 148(1) of the CompaniesAct 2013 and are of the opinion that prima facie the prescribed account and records havebeen made and maintained. We have however not made details examination of these recordswith the view to determining whether they are accurate or complete.

vii. a. According to the information and explanation given to us and on the basis ofour examination of books of accounts the Company has been generally regular in depositingundisputed statutory dues including provident fund employees’ state insuranceincome tax sales tax wealth tax service tax customs duty Cess and other statutorydues applicable with the appropriate authorities. No undisputed amount payable in respectof income tax sales tax service tax customs duty Cess excise duty and any otherstatutory dues were in arrears as at June 30 2015 for a period of more than six monthsfrom the date they became payable.

b. According to the information and explanation given to us particulars of dues inrespect of sales tax service tax value added tax and Cess which have not been depositedas on June 30 2015 on account fo disputes and given below:

Sl. No. Name of the Statute Nature of Dues Amount Period to which amount relates Forum where dispute is Pending
(Rs in lakhs)
1 Central Excise Act1944 Interest on duty demanded kept in abeyance pursuant to BIFR order 71.11 2005-06 High Court
2 Central Excise Act1944 Central Excise duty 10.61 2004-05 High Court
Central Excise duty 12.76 2005-06 CESTAT
Central Excise duty 651.97 2006-12 CESTAT
Central Excise duty 371.5 2007-09 CESTAT
Central Excise duty 1.82 2010-11 CESTAT
Central Excise duty 5.62 2007-12 CESTAT
Central Excise duty 11.08 2007-11 CESTAT
Central Excise duty 3.88 2009-10 CESTAT
3 Finance Act Service Tax 1.74 2008-10 CESTAT
Service Tax 12.74 2007-10 CESTAT
Service Tax 298.64 2007-10 CESTAT
4 APGST Act/CST Act Sales Tax 26.96 1995-96 High Court
Sales Tax 8.11 2001-02 Tribunal
Sales Tax (CST) 16.65 1991-92 Tribunal
Sales Tax (CST) 6.53 1992-93 Tribunal
Sale Tax (CST) 38.80 2010-11 Commissioner (Appeals)
5 Orissa Sales tax Act Sales Tax (ET) 0.21 2000-01 Tribunal
Sales Tax (ET) 2.77 2003-04 Tribunal
6 Tamil Nadu Sales Tax Act Sales Tax (CST) 12.30 1988-89 Tribunal
Sales Tax 13.26 1991-92 Tribunal
Sales Tax 5.83 1992-93 Tribunal
Sales Tax 18.93 1996-97 Tribunal
Sales Tax 9.16 1988-89 Commissioner (Appeals)
Sales Tax 6.09 1989-90 Commissioner (Appeals)

b. There were no amounts which were due to be transferred by the company to theInvestor Education and Protection Fund and rules made thereunder in accordance with thescheme sanctioned by the BIFR. Accordingly the clause vii (c) of paragraph 3 of the Orderare not applicable to the Company.

viii. The accumulated losses of the company are more than fifty percent of its networth. The Company has incurred cash losses during the period covered by our report and inthe immediately preceding financial year.

ix. According to the information and explanations given to us the company has notdefaulted in repayment of dues to any financial institution bank or debenture holders.

x. According to the information and explanations given to us the Company has not givenany guarantee for loans taken by others from bank or financial institutions. Accordinglythe clause x of paragraph 3 of the Order are not applicable to the Company.

xi. In our opinion and according to the information and explanations given to us theterm loans have been applied by the company during the year for the purposes for whichthey were obtained.

xii. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the company has been noticedor reported during the period.

For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Registration No. 307068E
R N CHATURVEDI
Noida Partner
August 28 2015 Membership No. 092087